Imperial Logistics CEO on how supply chains were impacted by COVID-19

Imperial Logistics CEO, Mohammed Akoojee, recently discussed the impact of COVID-19 on supply chains in an interview with CNBC Africa's Zinathi Gquma. Despite South Africa's retail sales showing positive signs, businesses continue to face operational challenges due to ongoing supply chain disruptions. Akoojee highlighted that the supply chain challenges are most prominent in businesses relying heavily on imported products. In areas where logistics operations are tied to local manufacturing, such as in South Africa, the impact of disruptions is minimized. The company's European business has faced challenges in the automotive sector due to a shortage of raw materials like semiconductors, impacting vehicle production. Additionally, the healthcare business has been affected by supply chain disruptions from India's second lockdown, causing shortages of medical supplies. However, Akoojee reassured that while certain sectors are heavily impacted, operations continue across other business segments. Regarding the improvement at the Port of Durban, Akoojee mentioned that while Imperial Logistics is not directly involved in port management, investment in port infrastructure will benefit the company's transport operations. With an increased demand for road transport due to capacity issues on the rail side, investments in ports will enhance the flow of goods and boost business capabilities. Akoojee emphasized the importance of strategic investments in ports to facilitate efficient trade flows. Akoojee also addressed the competition South Africa faces from other key trade lanes, particularly on the eastern side of the continent. Ports in Mozambique, Tanzania, and Kenya have gained market share due to proximity and cost advantages, posing challenges for South African ports to regain lost market share. Akoojee expressed the need for strategic investments to enhance South Africa's competitiveness in the region. In response to questions about Imperial Logistics' involvement in the distribution of COVID-19 vaccines, Akoojee revealed the company's participation in the national coordination committee for vaccine rollout planning. Imperial Logistics is among the 24 parties involved in the tender process for vaccine distribution but is awaiting the outcome. The company stands ready to support the government in the forthcoming phase two of the vaccination rollout, which is scheduled to begin in the middle of the next month. Overall, Mohammed Akoojee's insights shed light on the complex challenges faced by supply chains amidst the ongoing pandemic and the strategic initiatives needed to enhance operational resilience and competitiveness.